Chord Energy upgraded at BofA on improving capital efficiency

As previously reported, BofA upgraded Chord Energy (CHRD) to Buy from Neutral with a price target of $114, down from $125. The firm is pricing in the low end of its new base case range that assumes 80% of the development program are extended laterals by 2027, lowering the firm’s sustaining capex estimate by $100M to $1.3B and providing an $8 tailwind to its valuation, the analyst tells investors. The firm sees Chord as a company with a peer-leading balance sheet that will “help to navigate a volatile oil macro-outlook and a catalyst-rich path forward with recent developments not yet priced in that should differentiate Chord from peers,” the analyst added.